WEBVTT - Taboola's Singolda: Advertising Shift to 'Storytelling' (Audio)

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<v Speaker 1>T I I'm Charlie Pellett, and that's a Bloomberg Business flash.

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<v Speaker 1>This is taking Stock with Kathleen Hayes and Pin Box

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<v Speaker 1>on Bloomberg Radio. You're reading a story online and you'd

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<v Speaker 1>like to read even more. At the bottom, there's a

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<v Speaker 1>story that may be connected to what you were previously

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<v Speaker 1>interested in. That story is generated by a company, in

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<v Speaker 1>one case, by Taboula. This is a digital content recommendation company,

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<v Speaker 1>and the founder and the chief executive of Taboula, Adam Single,

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<v Speaker 1>that joins me now, Adam, thanks very much for being here,

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<v Speaker 1>Thanks for having me. Did I describe that correctly? Does

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<v Speaker 1>that make sense? Yeah? I would say it's it's content

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<v Speaker 1>recommendation and beyond. You know, we're really trying to be

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<v Speaker 1>that discovery box that helps you be connected with things

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<v Speaker 1>you may like and never knew existed. It could be content,

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<v Speaker 1>could be products, and as of last week, could be videos.

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<v Speaker 1>All right, tell us about this new Actless acquisition, because

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<v Speaker 1>this has to do with video becoming in many cases,

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<v Speaker 1>the dominant form of online content. That's true. You know,

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<v Speaker 1>we we've been really taking a good look at Facebook

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<v Speaker 1>news feed and you've seen how in the past year,

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<v Speaker 1>really we used to see pictures and stories, and as

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<v Speaker 1>of recent we've started seeing videos and there's a great

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<v Speaker 1>user value in that, and we wanted to essentially bring

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<v Speaker 1>the power of news feed that we see on Facebook

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<v Speaker 1>to all over the web. So as you get at

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<v Speaker 1>the bottom of the article, instead of just being recommended

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<v Speaker 1>with stories, you could also experience videos in a way

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<v Speaker 1>that's relevant to you based on who you are and

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<v Speaker 1>what you may like. And the company that you just

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<v Speaker 1>purchased is called convert Media. And let me guess how

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<v Speaker 1>much did you pay? Maybe a hundred millions something like that.

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<v Speaker 1>You're smiling now we we we don't we don't share

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<v Speaker 1>that we diach here that the company fantastic team um

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<v Speaker 1>I said it a few times, but it's now one

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<v Speaker 1>big family. Were very excited about it, and we did

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<v Speaker 1>share that they generated fifty million dollars in runway at

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<v Speaker 1>the point we purchased them. Now you've raised what about

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<v Speaker 1>a hundred and sixty million, I believe, yeah, yeah, And

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<v Speaker 1>that you say you're currently profitable your private leon and

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<v Speaker 1>valuation maybe a billion already. So when we raised the money,

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<v Speaker 1>and of two thousand fourteen, we were on a two

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<v Speaker 1>million dollar revenue. Ever since then, We've grown the company

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<v Speaker 1>to over half a billion dollars in revenue this year.

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<v Speaker 1>At the time, we were shy of a billion dollars.

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<v Speaker 1>So we're a private company. I don't really know. I'm

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<v Speaker 1>trying to spend most of my time thinking instead of

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<v Speaker 1>what's evaluation, more about financial metrics that drove the business,

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<v Speaker 1>you know forward, all right. So some of those metrics

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<v Speaker 1>include the kinds of companies that you have in the

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<v Speaker 1>kinds of content recommendations that you're making. Uh A O.

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<v Speaker 1>L I believe is one of your customers. Conde Nast

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<v Speaker 1>is a customer, Microsoft, Microsoft is a customer. How do

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<v Speaker 1>those companies make sure that the content that you are

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<v Speaker 1>being sent to is first of all appropriate and that

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<v Speaker 1>you're actually sending a real person not just kind of

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<v Speaker 1>a you know, a robotic back and forth that would

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<v Speaker 1>take place online. Right. So, we have about five million

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<v Speaker 1>pieces of content index across the Tabula ecosystem, and every

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<v Speaker 1>piece of content, similar to a TV rating, is rated

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<v Speaker 1>in a way that publishers can say, for us, we'd

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<v Speaker 1>like to recommend things within the financial section, or they

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<v Speaker 1>can say, never recommend entertainment. So we really work with

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<v Speaker 1>all the spectrum of publishers from Microsoft, a L two,

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<v Speaker 1>Daily Mail, TAMZ, and anyone in the middle. We call

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<v Speaker 1>it the bulla choice, and that allows them to decide,

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<v Speaker 1>almost like the parent decides for their kids at home,

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<v Speaker 1>what content makes sense for them and who they want

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<v Speaker 1>to be. And then beyond that, we use technology to

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<v Speaker 1>try to do a really good job curate the best

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<v Speaker 1>piece of content that you may like of the entire universe. Now,

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<v Speaker 1>obviously this is all end up tied to advertising online

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<v Speaker 1>because if you click again and read the next story,

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<v Speaker 1>then there are ads being served. Is there a distinction

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<v Speaker 1>to be made between the advertising that is purchased as

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<v Speaker 1>part of a big plan versus advertising that is involving

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<v Speaker 1>real time bidding based on the traffic that they get, right,

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<v Speaker 1>I mean real time bidding is more of the mechanics

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<v Speaker 1>of how brands can buy efficiency, and we support that.

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<v Speaker 1>We work without public companies such as credo um, private

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<v Speaker 1>big companies such as the Nexus and others that you're

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<v Speaker 1>touching A good point, which is the transition into this

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<v Speaker 1>content marketing right. Traditionally, we used to monetize the web,

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<v Speaker 1>a hundred and fifty billion dollar market online with banners

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<v Speaker 1>and all of us most of us stopped clicking on those.

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<v Speaker 1>And the transition that is going on is that brands

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<v Speaker 1>are becoming storytellers. They invest in the YouTube channel, they

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<v Speaker 1>invest in the corporate blog, they want to create relationship

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<v Speaker 1>with consumers. We to call them infomercials. That was another age, right, advertorial, informational.

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<v Speaker 1>But now you see brands with thousands of pieces of content,

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<v Speaker 1>really high quality content. American Express is open forum. Um.

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<v Speaker 1>You know, red Bullets sends people to the sky to

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<v Speaker 1>to film that on the video and and you've seen

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<v Speaker 1>people invest a lot in storytelling because what we see

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<v Speaker 1>now and we see that in a big way, is

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<v Speaker 1>that when someone with a piece of content they're engaged

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<v Speaker 1>with that, they will consider your products over time. So

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<v Speaker 1>I think Facebook is the largest discovery company. We got

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<v Speaker 1>a Facebook to see pictures of our friends. We end

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<v Speaker 1>up buying things we weren't sure we needed. But that

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<v Speaker 1>drove eighteen billion dollars of purchases last year to bullas

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<v Speaker 1>over half a billion dollars a year. And I think

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<v Speaker 1>this category will continue to grow as display and banners

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<v Speaker 1>will retransform into this in feed native field storytelling that's

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<v Speaker 1>been paid by top brands all over the world. The

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<v Speaker 1>video is where we started because of the purchase that

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<v Speaker 1>you just made of convert If you're in mobile and

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<v Speaker 1>you're in content, if you're not in video, you did.

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<v Speaker 1>I think it's a problem because I think video will

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<v Speaker 1>be a significant part of how mobile is monetized um

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<v Speaker 1>and a lot of it because the you know, mobile

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<v Speaker 1>is a great consumption device for video. If we hope

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<v Speaker 1>to become one of the largest TV companies out there,

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<v Speaker 1>streaming over one billion VA views a day, that's really

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<v Speaker 1>where we want to be. Thank you very much. Adam

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<v Speaker 1>Sinolda is the founder and the chief executive of Tabula.

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<v Speaker 1>This is taking Stock. Thank you for listening. I'm pim Fox.

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